Gurugram-based value e-commerce startup CityMall has raised USD 47 million (INR 414 crore) in its Series D funding round, led by venture capital giant Accel, with continued support from existing backers including Waterbridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures.
CityMall Series D funding comes at a flat valuation of around USD 320 million (~INR 2,814 cr), slightly below the USD 350 million valuation at which CityMall raised its Series C round in 2022. With this, the company’s cumulative funding has reached USD 165 million (~INR 1,451.33).
Building Value Commerce For “Bharat”
Founded in 2019 by IIT alumni Angad Kikla and Naisheel Verdhan, along with Rahul Gill, CityMall operates as a community-driven value e-commerce platform targeting Tier II, III, and IV towns. The company’s model relies on local community leaders and resellers who aggregate demand in smaller towns, enabling the distribution of affordable essentials across categories like grocery, FMCG, household items, fashion, and electronics.
CityMall currently operates in 60+ cities across Delhi NCR, Uttar Pradesh, Haryana, Uttarakhand, and Bihar and claims a 2x year-over-year growth trajectory in recent years. Its distribution model is touted to be up to three times more cost-efficient than traditional e-commerce players, giving it an edge in underserved markets.
CEO and co-founder Angad Kikla emphasised the company’s “Bharat-first” mission, saying:
“Families in small towns have been overpaying for essentials due to limited choices. By marrying technology with a disruptive low-cost distribution model, we are creating something meaningful for the next India.”
Focus On Private Labels And Supply Chain
The fresh capital will be channelled into:
- Expanding private label offerings to improve margins and build consumer loyalty.
- Diversifying product categories and strengthening partnerships with regional brands.
- Scaling its logistics and delivery network in smaller cities to deepen market penetration.
- Hiring top talent across technology, product, and operations.
Private labels are expected to be a key growth driver, helping CityMall achieve profitability in a segment where affordability is paramount. Accel partners Rachit Parekh and Pratik Agarwal noted that CityMall’s low-cost supply chain makes e-commerce “viable for underserved communities” and delivers “true value to mass-market consumers.”
Financial Snapshot
CityMall has seen steady revenue growth but remains loss-making as it invests heavily in logistics and technology:
- Revenue (FY24): INR 460 crore, up 22% from INR 376 crore in FY23.
- Operating Revenue: INR 427 crore, with ~92% from product sales.
- Net Loss (FY24): INR 159 crore, compared to INR 137–145 crore in FY23.
The widening losses highlight the cost of expansion and competitive pressures in India’s fast-growing small-town e-commerce market.
Competitive Landscape
CityMall competes with Meesho, DealShare and Amazon Bazaar and traditional giants like Flipkart, Amazon, Snapdeal and Tata-owned BigBasket. It also faces competition from quick commerce players like Blinkit, Zepto and Swiggy Instamart, which are now eyeing smaller towns.
India’s e-commerce market is valued at USD 125 billion in 2024 and is expected to reach USD 400 billion by 2030, according to industry reports. Most of this growth will come from smaller cities and rural India, driven by cheap data, rising internet penetration and greater consumer credit availability.
CityMall’s “Bharat-first” approach and focus on affordable, unbranded and private label products give it a unique play in this crowded space.
Outlook
Despite the overall funding winter in India’s startup ecosystem, CityMall’s ability to raise capital at a flat valuation shows investor confidence in its low-cost model and mass market potential. The next phase of growth will be about whether it can scale private labels, manage logistics efficiently and move towards profitability while fighting off deep-pocketed rivals.
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